CA AB228

Expands the State Compensation Insurance Fund's authority to insure California employers with principal places of business in California against workers' compensation liability under other states' laws, if the fund already insures the employer's California-based employees.

Requires the ceding insurer to be admitted in both California and the out-of-state jurisdiction, have an A- or better rating from A.M. Best, have substantial reinsurance experience, and maintain at least $100,000,000 in surplus.

Prohibits the fund from initiating paid advertising or soliciting sponsorship of advertising campaigns to market out-of-state coverage to prospective insureds.

Mandates the Department of Insurance report to the Legislature by March 1, 2015 on the fund's experience with out-of-state coverage, including recommendations on continuation, limitation, or expansion, with costs paid by the fund.

Makes the new authorization and restrictions operative only until December 31, 2016.